Standard & Poor's Ratings Services said it raised to AA-minus from A-plus its long-term rating on Mount Vernon, Iowa's general obligation capital loan notes.
At the same, Standard & Poor's assigned its AA-minus rating to the city's series 2014 GO capital loan notes. The outlook is stable.
"The upgrade is based on improved financial results," said Standard & Poor's credit analyst Anna Uboytseva.
The notes are valid and legally binding general obligations of the city payable both as to principal and interest from ad valorem taxes levied against all taxable property therein without limitation as to rate or amount. The city will use proceeds to finance various infrastructure and improvement projects.
Mount Vernon is located in Linn County, approximately 13 miles east of Cedar Rapids and 22 miles north of Iowa City.
